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Cus - Export of non-basmati rice - Notification 20/2023 insofar as it denies the benefit of the transitional arrangement as contained in para-1.05 of the FTP 2023, is bad in law: HCCus - Refund of SAD - 102/2007-Cus - Areca Nut and Supari are one and the same - Objections with regard to name, nature and status of importer or buyers or the end use of goods purchased by them etc. are extraneous: HCCX - Interest on Refund - Since wrong order annexed by petitioner in paper book, Bench is unable to proceed further - Petition is dismissed with liberty to file a fresh one: HCGST - No E-way bill - When petitioner imports machinery and after Customs clearance, transports same to his own factory, it cannot be said that such a transportation would fall within the definition of term 'supply' - Penalty imposable under second limb of s.129(1)(a): HCGST - Fix responsibility on officers who allowed BG to lapse - Petitioner not justified in not renewing BG - Cost of Rs.15 lacs imposed, to be paid to PM Cares Fund: HCGST - Since the parties agree that petition can be disposed of on the basis of records available before Appellate Authority, petitioner is directed to enclose all documents filed before Appellate Authority in a compilation, in form of a paper book: HCWrong RoadST - Whether any service is used for personal consumption or not is certainly question of fact and being question of fact, no substantial question of law arises: HCGovt proposes to amend Geographical Indication of Goods Rules; Draft issued for feedbackST - If what has been paid as tax is without authority of law, Revenue should refund the same - Denial of credit would result in the whole exercise being tax neutral: HCWarehousing Authority notifies several agri goods to be stored in only registered warehousesST - Even if the petitioner may have a case on merits, it is best left to be decided by the Appellate Authority under the hierarchy prescribed under the FA, 1994: HCUS FDA okays Eli Lilly Alzheimer’s drugGST - Petitioner challenges jurisdiction of assessing officer - Petitioner is entitled to file an appeal u/s 107 by availing an alternate efficacious remedy: HCFive from Telangana killed in car accident on Pune-Solapur HighwayGST - Existence of an alternative remedy is a material consideration but not a bar to the exercise of jurisdiction: HCHush money case against Donald Trump - Sentencing deferred to Sept 18GST - It is open to a trader to take goods by whichever route he opts, unless the law otherwise requires, destination point being intact: HCDeadly hurricane Beryl smashes properties in JamaicaGST - Conclusion that taxable person is providing a service to supplier while taking the benefit of a discount by facilitating an increase in the volume of sales of such supplier is ex facie erroneous and contrary to the fundamental tenets of GST law: HCIsrael claims 900 militants killed in Rafah since May monthGST - Order expressly records that personal hearing notice was returned with endorsement 'no such person at address' - Since petitioner has shifted to a new premises, it is just and necessary to provide an opportunity to contest demand: HC116 die in stampede at UP ’Satsang’I-T- Application for revision of order dismissed in limine on grounds of delay; case remanded for re-consideration: HCWe are deepening economic ties with India, says US officialI-T- As per Section 119(2)(b), power to condone applications relate to claims for amount exceeding Rs 50 lakhs are to be considered by CBDT; however it is impermissible for CBDT to pass order on merits: HC8 Dutch engineers build world’s longest bicycle - 180 feet, 11 inchesI-T- Additions framed u/s 68 for unexplained income & u/s 69 for unexplained expenditure not tenable where complete transactional details are furnished & not doubted: HCRailways earns Rs 14798 Crore from Freight loading in June monthI-T- Delay in filing ITR is per se insufficient reason to estimate assessee's profit @15% on turnover, more so where audited financial report is filed in timely manner: ITATMoD inks MoU to set up testing facilities in Unmanned Aerial System in TN Defence Industrial CorridorI-T- For invoking section 69A, assessee should be found to be owner of any money, bullion, jewellery or other valuable article & which is not recorded in the books of account: ITATGovt proposes Guidelines for ethical approach to Coal MiningI-T- TDS credit can be allowed based on AIS, where details pertaining to TDS, advance tax & other payments are reflected in Form 26AS: ITATVaishnaw to inaugurate Global IndiaAI Summit 2024I-T- Lending money with the primary intention of earning interest can be considered a business activity, but nature and manner of lending, as well as the frequency, should be taken into account: ITAT
 
Sectorial Issues and Impact of GST

SEPTEMBER 16, 2016

By Parag Mehta, CA

IN this article, I have tried to analyse some of the issues and impact foreseen if the Model GST Act is implemented in the form it has been made known to the public.

Sr. No

Sector

Issues/Impact

1

Logistics Sector

a)  Non Allowability of Input Tax Credit on fuel as it is outside the scope of GST

b) Non Clarity on abatement

c) Taxability of Export Freight

d) No concept of Bundled Services

e) No clarity on present system of check-posts and other entry/exit posts

2

Construction Sector

a) Non Clarity on abatement

b) Exemption for infrastructure and other projects??

c) Taxability of Development Rights, FSI & TDR??

d) Eligibility of Input tax credit for construction sector.

3

FMCG Sector

a) Taxability of Stock and Branch Transfers

b) Valuation mechanism for stock and Branch Transfers

c) Status of Area Based Central and State Taxes exemption

d) Taxability and valuation of Free Samples

e) Reconciliation of inward and outward supplies

d) No clarity on present system of check-posts and other entry/exit posts

4

Information Technology Sector

a) Implications for inter-unit services i.e between two branches or head office and branches

b) Status of current SEZ/STPI and other benefits

c) Providing services to various branches of a client in various states of India.

d) Impact on ongoing contracts

5

Pharmaceutical Sector

a) Taxability of Stock and Branch Transfers

b) Valuation mechanism for stock and Branch Transfers

c) Status of Area Based Central and State Taxes exemption

d) Taxability and valuation of Free Samples

e) Reconciliation of inward and outward supplies

f) No clarity on present system of check-posts and other entry/exit posts

g) Power to challenge the transaction value.

h) Continuation of MRP based assessment.

6

Aviation Sector

a) Segregation of journey for place of supply

b) All taxes levied by other authorities to be taxable.

c) Taxability of lease/Purchase of aircrafts

7

Other Common Issues

a) Very low threshold limit of 10 lakhs

b) No concept of centralised registration

c) Suo Motu cancellation of registration in various scenarios

d) Filing of 3 returns every month (36 every year). Besides it annual return, TDS Returns and ISD Returns are separate. The returns are to be filed for each registration.

e) Payment of GST on Reverse charge on goods/services

f) Concept of TDS /TCS in GST

g) Permission of Commissioner to send goods on job work without payment of tax.

h) In case of wrong payment of CGST/SGST as IGST and vice versa , amount needs to be paid again before claiming refund.

i) Adjustment of refund with pending dues

j) Pre-deposit of 10 % on disputed amount, interest and penalty

k) Lower prosecution limit.

l) Collection of tax at source by e-commerce operator.

Conclusion:

Hopefully, before the final version of the Act comes into being, it would be in the fitness of things that the Government takes note of the apprehensions expressed by the various trade bodies and associations and make judicious amendments wherever necessary.

After all, the entire purpose of introduction of GST is to subsume almost all taxes and create a single unified market for ensuring a seamless credit and a quantum economic growth.

(DISCLAIMER : The views expressed are strictly of the author and Taxindiaonline.com doesn't necessarily subscribe to the same. Taxindiaonline.com Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the site)

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